Marketing management report on: Brands of Singapore- business environmental factors
Intend of the report is to talk about one of the local brands of Singapore which is well-known among Singaporean people. Assuming the role of a marketing manager, an international plan has been formed to enter into the foreign market. In this regard, report presents the profile with respect to that Singapore’s company taken for the discussion. Next part of the paper defines political, legal, environmental, social and economic environment in order to create a general idea for international environment. A complete environmental analysis also helps understanding foreign trade investment, exchange rates, interest rates and gross national income at an international level. Apart from this, other risks such as ethical, cultural, investment aspects and financial management issues also have been described. Therefore, researches, surveys and market conditions have been analyzed and have been put before the company to take care of and then to make entry at international level. Besides, international marketing strategy and branding strategy also have been discussed for company to take into consideration. Being a marketing manager of that company, strategies have been formulated and recommended so that they could be taken care for further evaluation of the country’s to do business with. Lastly, some decisive points describe the entire discussion in short.
Environmental, economic, legal, political and social conditions and nation’s other events are part of international business environment. These aspects may influence the business of a company or a brand. Moreover, financial, natural, technological and demographic factors are considered in international business environment. When an organization plans to make international entry for its business, it should not only take resources into account but the environment should also be focused. For that, environment is analyzed and strategies and policies are formulated and implemented in business’ practices. Here, Manchu local brand of Singapore has been chosen to describe international business environment, international marketing and branding strategies for it. To support the discussion, both micro and macro factors of internal business have been illustrated (Cliffs notes, 2012). Subsequently, the report has been presented in a comprehensive manner by briefing the profile of company first. Reason for providing the profile and status of the company is to draw a simple and precise idea about current economic and environmental nature of Manchu’s business.
Singapore is known as high-tech and wealthy city-state which is located in south-east of Asia. Moreover, Singapore is known for its leaders’ conservatism and their firm social controls (BBC news Asia, 2012). Manchu company of Singapore has its business in men’s apparel. Company started its backend operation in this industry and started manufacturing, trading furnishing and distributing garments to the retailers. It is known for its innovative designs for men’s apparel in Singapore and has produced more than over 2500 designs including t-shirt, jeans, long pants, shirts, Bermudas, tie, hat and so on. Moreover, Manchu has specialization in manufacturing and its professional strict controls make sure that product is made perfect to deliver it to the customers. Therefore, quality is maintained from the stage of manufacturing to the level of merchandising in Singaporean Company Manchu. Besides it, Manchu has named itself as largest wholesaler of men’s apparel and export garments to the countries such as Malaysia, Australia, China, India, Indonesia and Vietnam. On the other hand, it always attempts to make international entry in some other countries as well (Manchu, 2008).
International business environmental factors:
International business environment consists of both micro and macro factors and therefore provides environmental scanning from strategic management’s point of view.
Political system: Political framework directly makes an impact on the investment made by the organizations and country’s economic development. Therefore, the stability of political context gets volatile because it depends upon the support provided by the people of the country. Moreover, it is also noticed that policies in political framework are made seldomnly and transformed on a very fast speed. Policies such as taxation, business regulations, legislations and government stability are covered under political system. As far as international trade is concerned, quotas, blockages, tariffs, price controls, liberalization, privatization and globalization of a country also play a vital role.
(Source: Finntrack ltd, 2011)
Legal system: The legal system of international market is totally different from that of domestic legal system and becomes a main point of consideration if Manchu has made an entry to international market. If the number of countries increases in which the company wants to invest, the complexity will automatically increase. The risks such as expropriation, currency inconvertibility, credit risk, and corruption should be considered by Manchu in order to assess political and legal differences of countries (Gertner, 2001).
Economic system and differences: Economy is said to be the soul of a country. Therefore, economic system of a country may have great impact and influence international business. There are some economic factors which are to be considered such as general economic framework, economic stability, capital markets, land, resources, capital, market size, economic infrastructure of the that country where Manchu is thinking to invest in. In addition, there can be two types of economy which are to be taken into account by Manchu. First, mixed economy where control is in hand of different degree and level of customers and government. Second, market economy where the resources of an organization are completely allocated and controlled by the organization itself and the consumers (Wirtz & M Y Chung, 2001).
Trade restrictions: Apart from legal, political, economic and other problems, Manchu should take care of import and export control systems of desiring countries at an international level. On the similar hand, there can be wide differences in customs and trade practices between two countries.
Despite having such issues and challenges, international markets can be developed by Manchu, be it developing or developed markets. Therefore, to develop and expand its business, it needs to concern some potential marketing issues which may arise during international business (Czinkota & Ronkainen, 2001).
After making an environmental analysis, it is also necessary to put forward some marketing issues that Manchu may face while making an entry to international markets.
Differences in language: Manchu can face the issues with respect to the language differences while entering into international market. This problem may be there even if the same language is used in different word of terms having different meanings. Language problem may frame problems in negotiations, dealing directly with customers, etc.
Differences in marketing infrastructure: Moreover, the nature of marketing facilities in different countries may have broader level of differences. Likewise, an advertisement proposed in Singapore by Manchu may not be effective in other country it wants to invest in (Armstrong & Everett, 1991).
Identifying true market need: A key to an organization’s success is producing and offering the products for which consumers have persuasive need. Therefore, it is not that much easy to find out the true needs of people at large in foreign countries. It becomes much difficult as not having lived in those countries’ culture and their day-to-day lives.
Cultural issues: Marketing modes and messages delivered through media such as magazines, television, campaigns and many other mediums influence the customers to buy the products. But culture becomes an extreme issue as message considered funny in one country may be considered insulting in another country. Thus, it will create a big issue if appropriate media is not concerned in accordance with invested country. In similar way, accuracy in translation of a message or an advertisement from one language to another also creates challenges before investing country (Yucel, Elibol & Dagdelen, 2009).
Distance and time: As Manchu has its business in men’s apparel wholesaling, it wishes to set healthy relationships with customers, retailers, distributors. Whereas making an entry in foreign countries, it requires having proper background information of distance and time so that significant investment could be made for distribution purpose. On the other hand, differences in time zones also create difficulty for Singapore to coordinate and collaborate with other foreign countries when it is required most.
Finding reliable partners for business: To start a business in foreign country, an organization needs reliable partners who could support them with integrity. Therefore, in order to attain personal and healthy relationship with partners, there is need to seek reliable one.
Moreover, there are other factors which are required to be considered as business is to be started in foreign countries. They are customers, suppliers, government, creditors, investors, partners, competitors. In this context, competitor is the strongest part where Manchu needs to concentrate because competitors are not only those who compete in the same market with similar products, but also those who focus on consumer’s flexible income and compete for it. Like, Spykar, Airhole, Airblaster, Ambsn, Etnies, Markisa, Sessions, etc are the popular brands will be competitor markets to compete with for Manchu in foreign countries (Tactics, 2012).
Furthermore, factors such as population, age, size of market location, ethnicity, education, lifestyle, consumer behavior, and trend in marketing mix in foreign countries also matter a lot as far as internal business environment is concerned. Thus, the next section of this paper has highlighted some international marketing strategies for Manchu.
International market strategies:
- First, Manchu should frame a strategic marketing process including the marketing mix in accordance with actual requirement of investment to be made in foreign countries by the company.
- An environmental scanning is needed to be done in terms of industry, market, business environment and analysis of customers and competitors position in international market (Lishchenko al, 2011).
- The best advantage Manchu can make in order to gain competitive advantage is through segmentation, better positioning and targeting strategies.
- Furthermore, there are various growth & development strategies which can be taken for help in implementation of international market strategies.
- Then, there is need to understand the cultural diversity and its implications in business.
- Next, general complexities of marketing mix’s use in marketing strategy should also be understood (Birnik & Bowman, 2007).
- Apart from this, Manchu should seek opportunities for international networking.
- Prior information should be with Manchu with relation to import and export systems of foreign countries.
- Employment level of foreign countries should also be taken in account so that allotment of resources could be made an optimum level.
- As Manchu is a design-driven company, it should go with standardization and adaptation strategy because it has been the subject of determined, and an on-going discussion for numerous decades. Standardization refers to sell similar products in all markets. Through this, higher union of consumer preferences, patterns, buying behavior and technological uniformity can be attained.
- On the other hand, adaptation strategy will help Manchu identifying the extent to which features, attributes and packaging of a product differs across different national and international markets (Horska & Ubreziova, 2007).
Brand strategy can be implemented only in two cases. First, the company and its products already have an existence in the market and second, if it desires to make international entry and to make itself as one of the potential companies. In that case, following are the factors which motivate an organization to build a new brand in international market.
- Development of the level of competition in active market
- Requirement to differ it from competitors
- Unexploited financial resources
- Entrance of well-known and strong international brands in the market (Waśkowski, 2011)
Therefore, the following plan can be suggested to Manchu for creating and developing its brand in international markets:
- Determining the needs of the customers: First, a market survey is required to be conducted with respect to customers’ needs and preferences so that focus could be made on specialization in design and innovation of men’s apparel.
- Determining identity and building desirable brand image: Then, identity of the brand and company should be evaluated and desirable and preplanned brand image should be created.
- Testing the product: There are various stages in manufacturing the garments. Each stage should be assessed clearly and perfection should be judged and evaluated for the product before it is delivered to the customers.
- Choosing the best project: As company has to make an international level entry, it should ensure the background of the project it has planned to invest in. Therefore, to build a strong and firm international brand image, Manchu needs to choose one of the best projects out of all.
- Law protection of brand: It means that all legal regulations and laws of invested countries should be considered by Manchu. It will protect the brand image of their company from each angle and will help developing it.
- Introducing brand to the market by means of marketing activity: Marketing activities such as communication, use of banners, hoardings, shopping mall campaigns, etc should be used in order to introduce the company’s brand to the market.
- Controlling: Final stage of brand strategy is to control the brand which has been introduced through marketing activities because it becomes easier to remember it in mind if it serves the best quality products to the customers (Malinowska-Olszowy, 2005).
For a conclusion, it can be said that research report has talked about Singapore’s local brand Manchu which operated in men’s apparel and export its garments to a few countries. The main aim of Manchu is to expand its market to many international markets. Therefore, this paper has made an environmental analysis of some factors such as political, legal, economic and environmental systems of countries. All these should be considered while planning for international market entry. Furthermore, Manchu has been told about the considered differences which may work as risk factors. In this regard, factors such as cultural differences, language differences and ethnicity have come up as risk factors. Moreover, trade restrictions in various countries may also impact Manchu’s business in international markets. Apart from this, factors such as population, age, education, status, market infrastructure, nature and size of market also matter while international market entry for any business. Next section of this paper has recommended some international and branding strategies to Company Manchu. Appropriate marketing mix planning for international market, standardization and adaptation strategies are part on international marketing strategies to be considered by Manchu. Similarly, branding strategy has revealed some points that should be considered by already existing brand in Singapore.
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